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![]() Thursday, April 29, 1999 Published at 13:48 GMT 14:48 UK ![]() ![]() World: Europe ![]() Analysis: Turning off Serbia's oil supply ![]() ![]() Yugoslavia's oil industry has been one of Nato's main targets since the alliance began its bombing campaign just over a month ago.
Before the bombing, a quarter of Yugoslavia's oil supplies came from its own fields, while much of the rest arrived by pipeline from Croatia. This infrastructure, as well as the country's two big refineries, has now been devastated and Yugoslavia has had to turn to importing refined products by sea.
The American oil giant Texaco has also sent a big cargo of petrol to the Montenegrin port of Bar. Role of Russia With the imposition of a Nato and European Union oil embargo, policed by Nato forces, Yugoslavia may look to Russia to keep itself supplied. Russia was a supplier before the crisis and could be willing to keep selling oil to smugglers. So far there has been no clear sign of Moscow agreeing to stop selling oil to Belgrade.
Nevertheless, UK Foreign Secretary Robin Cook says an oil blockade of Yugoslavia would be effective in starving Serb forces of vital fuel even if it did not apply to Russian tankers. An oil embargo by Nato and EU countries and the aspiring EU members of central and southern Europe would stop 75% of the oil normally reaching Yugoslavia, according to UK Foreign Office sources. In addition, Mr Cook has said the bombing of bridges over the Danube means the river is effectively closed as a route for oil-carrying barges. Overland supplies Faced with this situation, Serbia is likely to turn to overland routes for its oil products - crude oil is of no use as refineries have been destroyed.
There are large profits to be made by individuals smuggling oil, and a black market in oil products is a likely result. Channels may also be found through some of the former Yugoslav republics, according to Leo Drollas of the Centre for Global Energy Studies in London: "Although Croatia and Serbia fought a war, they are fellow Slavs and there are still some Serbs in Croatia. And of course there's Bosnia-Herzegovina which also has a large Serb population," he says. "These borders are obviously policed but there's always scope for smuggling, especially if the authorities are willing to turn a blind eye at various times." Stockpiles Serbia could also have big stockpiles of oil for military use, hidden away from the normal storage facilities which make obvious targets for Nato. Before the current crisis, Yugoslavia was importing 50,000 barrels of oil a day, and it is difficult to to see how such quantities could be brought in by road alone. Sooner or later, if overland deliveries become Yugoslavia's major source of imports, the country is likely to face a chronic oil shortage. ![]() |
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